Too Big to Fail Is Too Good to Resist

[Valin]

National Review:

The Brown-Vitter amendment to end TBTF subsidies takes the GOP in the right direction.

James Pethokoukis

3/25/13

 

The U.S. Senate rarely votes unanimously on anything of much importance. The Obama White House, though, managed to bring this about: Last May, a clone of its previous year’s budget proposal failed unanimously, 99–0. Way to bring the two parties together, Mr. President.

 

There was far less consensus on the Senate budget proposal that passed on Saturday. It was approved by only one vote, 50–49.

 

But an amendment proposed by Sherrod Brown, an Ohio Democrat, and David Vitter, a Louisiana Republican, suggests an intriguing possibility for a future bipartisan agreement: The Senate voted 99–0 late on Friday to end “too big to fail” subsidies or funding advantages for banks with more than $500 billion in assets.

 

“This is a really impressive sign that we mean business on ending too-big-to-fail,” Vitter said after the vote. “Megabanks are still receiving special handouts that create an uneven playing field — making it harder for our community banks and credit unions to compete.”

 

(Snip)